HONG KONG, Aug 17 (Reuters) – Insurer AIA Group Ltd (1299.HK) raised its interim dividend on Tuesday and posted a leap in first-half new enterprise worth, because it recovered from pandemic-led enterprise disruptions in most of its major markets aside from Hong Kong.
The Asia-focused insurer’s worth of latest enterprise (VONB), which measures anticipated revenue from new premiums and is a gauge for future progress, rose by 22% to $1.81 billion within the January-to-June interval.
VONB jumped 15% in AIA’s largest market of mainland China, serving to the corporate enhance its interim dividend by 8.6% to 38.00 Hong Kong cents per share.
“All reportable segments exceeded pre-pandemic ranges of the primary half of 2019, besides Hong Kong, the place ongoing journey restrictions have affected new enterprise gross sales to mainland Chinese language guests,” Chief Govt Officer Lee Yuan Siong mentioned.
VONB grew simply 2% in Hong Kong.
AIA and different insurers in Hong Kong beforehand bought a big share of their gross sales from promoting insurance coverage merchandise to Chinese language guests to Hong Kong searching for higher merchandise and abroad funding alternatives.
In Asia, insurance coverage companies primarily depend on their military of brokers for product gross sales, which have been dented by lockdowns and social distancing measures put in place by varied international locations to include the pandemic, although AIA, like friends, has been attempting to promote extra merchandise on-line.
“Though the lasting results of the pandemic are removed from over, I’m assured that our companies are outfitted with progressive applied sciences and digital instruments that allow them to navigate disruption higher than earlier than,” mentioned Lee.
Reporting by Indranil Sarkar in Bengaluru and Alun John in Hong Kong; Enhancing by Aditya Soni advert Stephen Coates
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